Financial Data and Key Metrics Changes - Revenue in Q3 increased by over 24% year-over-year, reaching $379 million compared to $305 million in the prior year quarter [12][13] - Adjusted EBITDA grew by 15% year-over-year, totaling $85 million with an Adjusted EBITDA margin of 22.3% [5][13] - GAAP earnings per share were $0.92, up from $0.79 in the prior year, with adjusted earnings at $0.98 per share, marking the sixth consecutive quarter of year-over-year growth in adjusted EPS [12][13] Business Line Data and Key Metrics Changes - Building Products segment net sales grew 36% year-over-year to $224 million, driven by higher volumes and contributions from acquisitions [18] - Consumer Products segment net sales increased by 11% year-over-year to $155 million, supported by improved volumes and higher average selling prices [20] - Adjusted EBITDA for Building Products was $59 million with a margin of 26.3%, while Consumer Products achieved $35 million in adjusted EBITDA with a margin of 22.9% [18][20] Market Data and Key Metrics Changes - The demand in end markets is steady, with expectations for growth as market conditions improve [10][11] - The company is not over-indexed to any specific vertical or industry, allowing for diversified growth opportunities [30] Company Strategy and Development Direction - The company is leveraging the Worthington Business System (WBS) focusing on innovation, transformation, and M&A to maximize growth [6][8] - Recent acquisitions, such as LSI, are expected to enhance the company's position in engineered building systems and contribute to future growth [8][74] - The company is investing in workforce development through career accelerator programs to build a skilled labor pool for the future [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to grow market share and capitalize on strengths as market conditions improve [5][11] - The company is focused on maintaining a conservative leverage ratio and ample liquidity, with a net debt to trailing Adjusted EBITDA ratio of approximately 1x [17] Other Important Information - The company returned $9 million to shareholders through dividends and share repurchases during the quarter [15] - Free cash flow for the trailing 12 months was $164 million, reflecting a 95% conversion rate relative to adjusted net earnings [16] Q&A Session Summary Question: Can you talk about volume versus price in organic revenue growth? - Management indicated that both volume and pricing contributed to organic growth, with Building Products up 16% and Consumer Products up 11% [25][27] Question: Can you provide color on organic growth expectations for Q4? - Management refrained from providing specific guidance but noted that trends are expected to continue [30] Question: How is the tank business in data centers performing? - Management highlighted significant growth in the ASME cooling tanks business, expecting it to triple this year and continue growing for several years [36][38] Question: What is the status of the LSI acquisition? - The acquisition is meeting expectations, with early integration efforts showing promise [74][75] Question: How are tariffs impacting the business? - Management believes they are net beneficiaries of tariffs, which provide a competitive advantage as a domestic manufacturer [80][81]

Financial Data and Key Metrics Changes - Revenue in Q3 increased by over 24% year-over-year, reaching $379 million compared to $305 million in the prior year quarter [12][13] - Adjusted EBITDA grew by 15% year-over-year, totaling $85 million, with an adjusted EBITDA margin of 22.3% [5][13] - GAAP earnings per share were $0.92, up from $0.79 in the prior year, with adjusted earnings at $0.98 per share, up from $0.91 [12][13] - SG&A expenditures declined by 70 basis points as a percentage of sales [4] Business Line Data and Key Metrics Changes - Building Products segment net sales grew 36% year-over-year to $224 million, driven by higher volumes and acquisitions [18] - Consumer Products segment net sales were $155 million, up 11% year-over-year, with adjusted EBITDA increasing to $35 million from $29 million [20] - The Building Products adjusted EBITDA margin was 26.3%, while the Consumer Products margin expanded to 22.9% from 20.5% [20] Market Data and Key Metrics Changes - The demand in end markets is steady, with expectations for growth as market conditions improve [10][11] - The company is not over-indexed to any specific vertical or industry, allowing for diversified growth opportunities [30] Company Strategy and Development Direction - The company is leveraging the Worthington Business System (WBS) focusing on innovation, transformation, and M&A to maximize growth [6][7] - Recent acquisitions, such as LSI, are expected to enhance the company's position in engineered building systems [9][73] - The company is investing in automation and AI to improve operational efficiencies and drive growth [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong demand in end markets and the effectiveness of their strategies [10][11] - The company is well-positioned to continue growing and creating value for stakeholders as market conditions improve [11] Other Important Information - The company returned $9 million to shareholders through dividends and share repurchases [14] - The modernization project is on track and expected to be completed by mid-fiscal year 2027 [16] Q&A Session Summary Question: Can you talk about volume versus price in organic revenue growth? - Management indicated that both volume and pricing contributed to organic growth, with Building Products up 16% and Consumer Products up 11% [25][26] Question: Can you provide color on organic growth expectations for Q4? - Management refrained from providing specific guidance but indicated that trends are expected to continue [30] Question: How is the pipeline forming for the tank business in data centers? - Management noted significant traction in the ASME cooling tanks business, expecting growth to continue for several years [35][36] Question: How is the LSI acquisition performing? - The integration is on track, and early results are meeting expectations, with strong potential for future growth [73][74] Question: What is the impact of tariffs on market share? - Management believes they are net beneficiaries of tariffs, having gained market share in multiple value streams [79][80]

Revenue Growth - Revenue growth of 24% was driven by a 14% organic increase and contributions from recent acquisitions like LSI and Elgen [1] Operational Efficiency - The Worthington Business System (WBS) led to operational efficiencies, resulting in a 70 basis point reduction in SG&A as a percentage of sales [1] Innovation and Demand - Innovation in the Building Products segment, particularly ASME water tanks for data center liquid cooling, saw demand triple this year with expectations for multi-year growth [1] Consumer Products Performance - Consumer Products performance improved with a 64% year-over-year increase in retail store placements for Balloon Time, now reaching 55,000 locations [1] Margin Resilience - Management attributed margin resilience to the 80/20 initiative and the transition of AI from experimentation to measurable operational impact in specific workflows [1] Strategic Acquisitions - The acquisition of LSI enhances the engineered building systems portfolio with high-switching-cost products engineered into OEM certified roof systems [1] Market Dynamics - Market dynamics remain mixed, but the company is leveraging its differentiated portfolio to capture market share as end-market conditions stabilize [1]